Federalist No. 35
Federalist No. 35, authored by Alexander Hamilton under the pen name Publius, is the thirty fifth of 85 essays. Titled "The Same Subject Continued: Concerning the General Power of Taxation", Hamilton writes that there are two evils associated with confining the government's ability to tax: First, the "oppression of particular branches of industry". Second, "an unequal distribution of the taxes, as well among the several States as among the citizens of the same State."
He also notes that if taxes are carried too high, they become burdensome and oppressive. He writes: "Exorbitant duties on imported articles would beget a general spirit of smuggling; which is always prejudicial to the fair trader, and eventually to the revenue itself".
It was published on January 5, 1788.